On November 21, Chinese President Xi Jinping and New Zealand’s Prime Minister John Key witnessed the signing of two important agreements between BAIC Group and Pacific Aerospace Limited (“PAL”). BAIC will acquire a stake in PAL and the two companies will set up a joint venture called Beijing Pan Pacific Aerospace Technology Co., Ltd.
During the festive signing ceremony, Mr. Xu Heyi, chairman of BAIC Group and Beijing General Aviation Co., Ltd., and Chairman Mr. Christopher Verissimo of Pacific Aerospace Group Ltd. celebrated the conclusion of the two important agreements. The agreements further clarify BAIC Group’s acquisition ratio of PAL equity as well as the establishment of the joint venture. The production of the P750 and other GA aircraft is also covered by the agreements. At the same time, BAIC is cooperating with Italian company AgustaWestland to create a domestic first-class helicopter industry base located in Southeast China.
The signing of two agreements between China and New Zealand marked a major milestone as regards cooperation in the field of high-end manufacturing. It has also become an important symbol of the new bilateral cooperation between the two countries. BAIC and PAL’s partnership will become a model for the new collaboration between China and New Zealand. As members of APEC, the two countries will deepen their relationship, thus strengthening the Asia-Pacific economic integration process. This will help ensure prosperity of the Asia-Pacific region and will contribute to the realization of the “Asia-Pacific Dream.”